Yahoo: MS Buyout Not Going to Happen

Microsoft has apparently already approached Yahoo about buying a percentage of its search business, but was rebuffed by Yahoo chairman and CEO Terry Semel. Additionally, rumors of a Microsoft takeover of Yahoo were untrue, Semel said at a talk at Syracuse University.

He admitted that discussion over Microsoft owning a portion of Yahoo's search business came as a result of talks over the continuation of a search advertising partnership. The Redmond company decided to end the partnership, opting to go with its own search advertising platform called adCenter.

"[We discussed] search, and Microsoft co-owning some of our search," Semel was quoted as saying by the Financial Times on Thursday. "I will not sell a piece of search - it is like selling your right arm while keeping your left; it does not make any sense."

Semel went on to say that if Microsoft was considering attempting to restart talks, there was "no chance" as the company had already formed its search business and was not interested in changing it.

Last week, the Wall Street Journal first reported that talks had occurred between the two parties, but were not currently active. Microsoft is in the process of reorganizing its search business, and apparently had considered a partnership or buyout of Yahoo in order to take on market-leading Google.